The first Delivering Better Financial Outcomes bill has now passed both the Senate and the House of Representatives.
The first Delivering Better Financial Outcomes bill passed the House of Representatives on the afternoon of 4 July just hours after the Senate greenlit the bill following last-minute amendments moved by the Financial Services Minister Stephen Jones.
The bill’s return to the lower house was due to amendments to Section 99FA to clarify that superannuation trustees are able to take a risk-based sampling approach when approving the payment of advice fees from member funds.
Australians can use their superannuation accounts to pay for personal financial advice about their superannuation from an independent financial adviser. Superannuation funds will continue to satisfy their current obligations that govern the usage of member funds.
This return of the bill to the House of Representatives was just a formality. As such, the bill has now officially passed Parliament and is headed for royal assent.
The first tranche of the legislation includes reforms such as streamlining fee documentation into one simplified document and enabling flexibility into how financial services guides are provided.
Commenting on the bill’s passing, Jones said: “The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024 implements reforms which reduce unnecessary red tape that adds to the time and cost of preparing financial advice without providing consumer benefits.
“The amendments to the Bill facilitate the passage of the first tranche immediately, maintain consumer protections, and support access to financial advice for the five million Australians at or approaching retirement.”
Looking ahead to the second tranche, which Jones has previously stated will have a “significant effect on the industry”, he said it will be developed in the second half of this year.
“The second tranche of reforms will further increase access and affordability of financial advice and will be developed over the second half of the year. This includes the government’s commitment to reform statements of advice, modernise the best interests duty and remove the safe harbour steps, and increase the provision of advice by financial institutions.”
Shadow financial services minister Luke Howarth and shadow treasurer Angus Taylor issued a joint statement on 4 July, calling the government’s amendments an “embarrassing attempt to cover up its botched legislative rollout”.
“It took Labor a staggering 16 months to begin responding to the review, and we still don’t have a timeline for a full legislative response,” Howarth and Taylor said.
“While today’s amendments attempt to address these concerns, it’s too little, too late.
“Stephen Jones’ incompetence has been exposed once again.”
